Foster Wheeler JV Awarded FEED and Project Execution Services Contract for LNG Canada Project in Kitimat, British Columbia

  Foster Wheeler JV Awarded FEED and Project Execution Services Contract for
  LNG Canada Project in Kitimat, British Columbia

Business Wire

ZUG, Switzerland -- May 20, 2014

Foster Wheeler AG (Nasdaq:FWLT) announced today that a subsidiary of its
Global Engineering and Construction Group, in joint venture with affiliates of
Chiyoda Corporation, Saipem S.p.A. and WorleyParsons Limited (“CFSW JV”), has
been awarded a contract by LNG Canada Development Inc. (“LNG Canada”) for the
provision of front-end engineering design (“FEED”) and project execution
services for a proposed liquefied natural gas (LNG) export project, known as
the LNG Canada Project, in Kitimat, British Columbia.

The contract value was not disclosed. Foster Wheeler’s portion of the FEED
phase will be included in the company’s second-quarter 2014 bookings.

The LNG Canada Project is planned as a phased development initially comprising
two processing trains, each with a production capacity of approximately six
million tonnes per annum of LNG, with an opportunity for an additional two
trains. The release to proceed with the project execution phase is subject to
regulatory approvals and a financial investment decision by LNG Canada, a
milestone still a couple of years away.

Roberto Penno, Chief Executive Officer, Foster Wheeler Global Engineering and
Construction Group, said, “We are delighted to confirm the award for this
major LNG liquefaction development in British Columbia. As part of the CFSW
JV, Foster Wheeler brings proven experience in modular design, fabrication and
construction for LNG facilities in remote and challenging locations. Together
with our joint venture partners, we look forward to working towards the
successful design and delivery of this landmark project.”

“We are pleased to be working with Chiyoda, Foster Wheeler, Saipem and
WorleyParsons, a group of companies who together have extensive experience in
the liquefied natural gas industry,” said Andy Calitz, CEO, LNG Canada. “LNG
Canada’s vision is to work collaboratively with First Nations, the local
community and other stakeholders, to deliver a project that is safe, reliable
and reflective of community interests, and I look forward to us working
together to deliver this project’s expected benefits to the surrounding
communities and all British Columbians.”

LNG Canada is comprised of Shell Canada Energy (50%), an affiliate of Royal
Dutch Shell plc, and affiliates of PetroChina (20%), Korea Gas Corporation
(15%) and Mitsubishi Corporation (15%). This operating entity is incorporated
and registered under the federal laws of Canada.

Foster Wheeler AG is a global engineering and construction company and power
equipment supplier delivering technically advanced, reliable facilities and
equipment. The company employs approximately 13,000 talented professionals
with specialized expertise dedicated to serving its clients through one of its
two primary business groups. The company’s Global Engineering and Construction
Group designs and constructs leading-edge processing facilities for the
upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and
petrochemicals, power, minerals and metals, environmental, pharmaceuticals,
biotechnology and healthcare industries. The company’s Global Power Group is a
world leader in combustion and steam generation technology that designs,
manufactures and erects steam generating and auxiliary equipment for power
stations and industrial facilities and also provides a wide range of
aftermarket services.The company is based in Zug, Switzerland, and its
operational headquarters office is in Reading, United Kingdom. For more
information about Foster Wheeler, please visit our website at www.fwc.com.

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Foster Wheeler AG news releases may contain forward-looking statements that
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Company and the various industries within which the Company operates. These
include statements regarding the Company’s expectations about revenues
(including as expressed by its backlog), its liquidity, the outcome of
litigation and legal proceedings and recoveries from customers for claims and
the costs of current and future asbestos claims and the amount and timing of
related insurance recoveries. Such forward-looking statements by their nature
involve a degree of risk and uncertainty. The Company cautions that a variety
of factors, including but not limited to the factors described in the
Company’s most recent Annual Report on Form 10-K for the year ended December
31, 2013, which was filed with the U.S. Securities and Exchange Commission on
February 27, 2014, and the following, could cause the Company’s business
conditions and results to differ materially from what is contained in
forward-looking statements including: the timing and success of the proposed
offer and acquisition of the Company by AMEC plc, the risk that the Company’s
business will be adversely impacted during the pending proposed offer and
acquisition of the Company by AMEC plc, benefits, effects or results of the
Company’s redomestication to Switzerland, deterioration in global economic
conditions, changes in investment by the oil and gas, oil refining,
chemical/petrochemical and power generation industries, changes in the
financial condition of its customers, changes in regulatory environments,
changes in project design or schedules, contract cancellations, the changes in
estimates made by the Company of costs to complete projects, changes in trade,
monetary and fiscal policies worldwide, compliance with laws and regulations
relating to the Company’s global operations, currency fluctuations, war,
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Company, interruptions to shipping lanes or other methods of transit, outcomes
of pending and future litigation, including litigation regarding the Company’s
liability for damages and insurance coverage for asbestos exposure, protection
and validity of the Company’s patents and other intellectual property rights,
increasing global competition, compliance with its debt covenants,
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estimates used in its critical accounting policies. Other factors and
assumptions not identified above were also involved in the formation of these
forward-looking statements and the failure of such other assumptions to be
realized, as well as other factors, may also cause actual results to differ
materially from those projected. Most of these factors are difficult to
predict accurately and are generally beyond the Company’s control. You should
consider the areas of risk described above in connection with any
forward-looking statements that may be made by the Company. The Company
undertakes no obligation to publicly update any forward-looking statements,
whether as a result of new information, future events or otherwise. You are
advised, however, to consult any additional disclosures the Company makes in
proxy statements, quarterly reports on Form 10-Q, annual reports on Form 10-K
and current reports on Form 8-K filed with or furnished to the Securities and
Exchange Commission.

Contact:

Foster Wheeler AG
Media:
United States
Patti Landsperger, +1 908-713-2944
patti_landsperger@fwc.com
or
UK
Anne Chong, +44 118 913 2106
anne_chong@fwuk.fwc.com
or
Investor Relations
Scott Lamb, +1 908-730-4155
scott_lamb@fwc.com
or
Other Inquiries
+1 908-730-4000
fw@fwc.com
 
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